Unsold housing units in Pune region, including Pimpri Chinchwad and fringe villages, increased to 56% in 2015 as compared to the previous year, revealed a report on Thursday.
As per the Gera Pune Residential Property Report, the unsold inventory (including ready as well as under-construction units) in the region shot up to 1,04,565 in 2015, up 56% when compared to the 67,181 unsold units in the previous year. The region saw the sale of 88,815 units in 2015 as against 98,968 housing units sold in 2014, the report revealed.
However, this does not mean that property prices will come down for the average home buyer anytime soon. In fact, in the budget category (at homes valued at less than Rs 4,144/ sq ft) the inventory hold up is just at about 12 months - a trend property experts consider to be healthy.
In the 12-month period ended December 2015, the average property prices measured across 3,312 projects in the Pune Metropolitan Region increased by just Rs 35 per square feet to Rs 5,096 per square feet.
It is the category-wise segment, however, that gives an insight into the amount of stress in home prices that are priced higher. Also, this indicates the massive demand for houses in the budget category.
In 2015, 44,142 units of budget houses were sold. In the same period, inventory available for sale in the segment was 43,396 units, indicating a roughly 12-month of inventory. Of this, the report said 21,685 units were ready to be sold but were unsold in the budget category, indicating a possibility of consumers still looking for houses at lower costs and the unavailability of the same.
In fact, increased demand in the budget segment has also lead property developers to increase the supply of budget homes. From 27,003 units in 2014 to 43,396 in 2015, the supply of sub-Rs 4,200 per sq ft category homes saw a 61% rise.
The other segments - value, premium, premium plus and luxury - continued to witness higher degree of stress. The average inventory in value (Rs 4,144 - Rs 5,180/ sq ft) and premium (Rs 5,180 - Rs 6,216/ sq ft) had an inventory overhang of 14 to 18 months, respectively. The premium plus segment (Rs 6,216 - Rs 7,770/ sq ft) witnessed an inventory overhang of over 20 months.
According to Rohit Gera, managing director, Gera Developments, "The supply continues to outstrip demand at this point. So, neither will the prices go up significantly nor will they drop substantially."
The possible rise in Ready Reckoner rates in April may push up the costs further. "Other factors that could potentially push property price up include the real estate regulatory bill that mandates builders to commit to service quality and strict timelines," Gera said.
First of all I would like to thank you and the Gera team for organizing different workshops at our doorstep.
The best thing I have done to my kids is that I took a right decision to buy a flat in Gera.
Because of this decision , Vishnu could attend the development workshops that were conducted.
Vishnu was a shy child who didn't like to participate in any of the programmes.
As far as Dale Carnegie workshops is concerned it has given him a lot of confidence and was presenting things in a much better way and I can see a lot of improvement in him.In simple words u made a person(..
My son Tattva had been enrolled in the intermediate level and has been coached by the Vishwanathan Anand Chess Academy coach . Tattva has made remarkable strides and will be on his way to get his FIDE rating in November. A lot of credit goes to the mentor for his unique way of handling his students. He has been very patient while working with Tattva on his areas of improvement. In addition before the tournament the coach had voluntarily added additional classes and doubled his efforts to get a better performance out of Tattva. He has shown complete ownership which is commendable. I hope he continues to develop more and more chess players in the coming days...
It's a wonderful experience with the tennis academy and my daughter liked it. Also she is getting good training and love for the game.
The coaches are good and we would continue using their expertise for Nishita going onwards. We are also looking forward for signing (actually instrument) and dancing coaching too.
This is to share with you that both my little girls (Aditi Anisha) are really enjoying their Tennis classes at the Mahesh Bhupathi Tennis Academy.
I always find them very excited whenever there is TENNIS CLASS, and this excitement matters to both of us, as the kids seems to be interested.
It’s nice to see them constructively engaged, and coming home happy and having felt productive in their own child little way. It’s a great way for them to bond with other young ones and feel belonged to a larger community.
Thanks to You, Gera Developments and MBTA for giving our young ones, an opportunity for a wonderful learning experience.
Now they are looking forwar..
Regarding the workshops & different academy sessions, it has been wonderful experience so far for Shlok and we’re looking forward for the new opportunities.
It’s absolutely fantastic to have all these academies in the premises, and that too from the renowned personalities, so we can send kids without worrying about other factors like safety & all.
And most importantly, a big thanks to you for the lovely follow-ups & timely updates about the upcoming/ongoing sessions.